US House energy chairmen oppose CNOOC's bid for Unocal

US House energy chairmen oppose CNOOC's bid for Unocal

Washington (Platts)--28Jun2005


The Republican chairmen of the House Energy and Commerce Committee and House
energy subcommittee Tuesday sent a letter to US President George W Bush
expressing "deep concern" about the China National Offshore Oil Corporation's
$18.5-bil bid to buy US oil company Unocal. "This transaction poses a clear
threat to the energy and national security of the United States," wrote Joe
Barton and Ralph Hall, both Texas Republicans. "We urge you to protect
American national security by ensuring that vital US energy assets are never
sold to the Chinese government." 

The congressmen said US national energy security depends on sufficient energy
supplies to support US and global economic growth, but that those supplies
were threatened by "China's aggressive tactics to lock up energy supplies
around the world that are largely dedicated for their own use."

Barton and Hall called the latest bid by CNOOC "simply the latest, and most
significant, step in this strategy. If approved, the transaction would put
vital oil assets in the Gulf of Mexico and Alaska directly into the hands of a
company controlled by the government of China." In addition, the congressmen
said the acquisition of Unocal by CNOOC could have other security implication
because Unocal uses "a host of highly advanced technologies" during the oil
and gas exploration and production process. 

"Many of these technologies have dual-use applications," Barton and Hall
wrote. "Given the potential military threat posed by China to our allies in
Asia and our security interests, it is of the utmost importance that US export
control laws be strictly applied to ensure that no sensitive technology falls
into the hands of the Chinese government, which can later be used to undermine
our national security."

This story was originally published in Platts Natural Gas Alert
http://www.naturalgasalert.platts.com

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